Seoul rolls out cash aid amid price surge

The government will provide cash assistance to 70 percent of the population to help offset the impact of high fuel and consumer prices, with payments ranging from 100,000 won to 600,000 won per person.

The Ministry of the Interior and Safety said on April 12 that about 32.56 million people will qualify for the “high fuel cost relief payment.” Eligible recipients include those in the bottom 70 percent of income brackets, based on health insurance premium assessments, as well as basic livelihood security beneficiaries.

The program will be rolled out in two phases. Priority groups, including basic livelihood recipients, near-poverty households and single-parent families, will receive payments from April 27 to May 8. The remaining eligible recipients will be paid in a second round from May 18 to July 3.

Basic livelihood recipients will receive 550,000 won, while near-poverty households and single-parent families will receive 450,000 won. An additional 50,000 won will be provided to residents in non-capital regions or designated population-decline areas, bringing the maximum benefit to 600,000 won.

For other eligible recipients, payment levels will vary by region. Residents in the Seoul metropolitan area will receive 100,000 won, compared with 150,000 won for those outside the capital region. Payments will rise to 200,000 won in designated population-decline areas and to 250,000 won in specially supported regions. Detailed eligibility criteria will be announced next month.

Recipients may choose to receive the funds via credit or debit cards, local currency vouchers or prepaid cards. As with last year’s consumer recovery coupons, spending will be limited to traditional markets and businesses with annual sales of 3 billion won or less. The funds cannot be used for online purchases, gambling or entertainment venues, or utility payments.

Spending will also be geographically restricted. Residents of metropolitan cities may use the funds only within their respective cities, while those in provincial areas are limited to their registered municipalities. Any unused balance will expire on Aug. 31.


Jaehee Han hee@donga.com